DBS surged approximately 10.5% month-to-date alongside a global rebound in equity markets as investors cheer the potential delay of the first US rate hike in nearly a decade. Despite a positive move in the US overnight markets last Friday, DBS started yesterday’s session with little changes before trading to an intra-day high of $18.00 in the afternoon. However, it pared the bulk of its earlier gains during the auction as it closed 9 ticks lower.
 
Finishing at $17.91 yesterday, DBS is currently trading above its 50-day moving average of $17.75, which may suggest short term strength in its share price.
 
According to MER’s report on DBS on 18 September, DBS remains as MER’s top pick among local banks with a 12-month price target of $17.50.  Data from Bloomberg show that DBS is currently trading at approximately 10.5x Price/Earnings, versus the 9x and 10.2x seen in OCBC and UOB respectively.
 
DBS ranked 8th in Asia Pacific private banking
 
DBS’s private banking is the 8th largest in the Asia Pacific after its Asset under Management (AUM) expanded by 35% last year to US$73 billion. The increase came mainly after DBS acquired the private banking business of Societe Generale.
 
Last Friday, the local bank also received a total of four awards at the Private Banker International (PBI) Global Wealth Summit & Awards 2015, including the “Most Outstanding Bank in Asia Pacific” for the second consecutive year.
 
PBI estimates that total AUM in Asia Pacific grew 12% to hit US$1.54 trillion last year and Singapore is the largest wealth management centre.

Source: Macquarie Research - 20 Oct 2015